NEWSNEWS March 29, 1996
THE FCC'S MULTIPOINT DISTRIBUTION SERVICE AUCTION CLOSES
The Federal Communications Commission's (FCC) auction of Multipoint
Distribution Service (MDS) authorizations closed yesterday after 181
rounds, raising $216,316,333 for the U.S. Treasury.
"The close of this auction marks another success for the American
public who will enjoy the benefits of increased competition in the
multichannel video programming market and receive value for the use of the
public spectrum," said FCC Chairman Reed Hundt. "Auctions have proven once
again to be the most fair and efficient means of putting spectrum licenses
in the hands of companies that value them the most."
The MDS service, popularly referred to as "wireless cable," permits
delivery of video programming to subscribers through microwave transmitting
and receiving antennas. Wireless cable service resembles cable television
but instead of coaxial or fiber optic cable, wireless cable uses over-the-
air microwave frequencies to deliver programming to subscribers.
Michele Farquhar, Acting Chief, Wireless Telecommunications Bureau
said, "The American consumer stands to gain from the introduction of
additional competition in the multi-channel programming market. This first
auction of authorizations for video services demonstrates the value of
using market-like methods for assigning spectrum."
In the MDS auction, the FCC auctioned 493 Basic Trading Area (BTA)
authorizations at the same time, using an electronic system of on-line and
telephone bidding. The FCC provided three preferences for small businesses
participating in this auction: reduced upfront payments, bidding credits
and installment financing. Of the 154 bidders who qualified for the
auction, 141 claimed status as small businesses. Small business bidders as
a group won a total of 381 or 77% of the authorizations.
"Through these Congressionally mandated incentives, small business
will create big benefits for U.S. consumers," said Catherine J. K.
Sandoval, Director, Office of Communications Business Opportunities.
Mass Media Bureau Chief Roy J. Stewart commented, "The number of
bidders and competitiveness of the bidding in the MDS auction demonstrates
wireless cable's potential for growth and viability as a competitor to
cable television."
- FCC -
News Media contact: Kara Palamaras at (202) 418-0654
Wireless Telecommunications Bureau contact: John Spencer at (202) 418-0660
Mass Media Bureau contact: Jerianne Timmerman at (202) 416-0881